Fair Finance, a non-profit social business tackling financial exclusion, has teamed up with Vanquis, a specialist finance provider for financially underserved customers, to launch a new decline referral scheme.
Via the new initiative, Vanquis customers who are not yet eligible for its products will be directed to Fair Finance, where they can apply for an affordable loan and automatically be assessed for benefit entitlements. The new decline referral scheme will aim to support over 100,000 financially underserved people across the UK over the next two years.
The launch follows a successful pilot programme that supported over 2,600 individuals, unlocking nearly £10million in benefits and advancing £100,000 in loans, over the past six months.
“Our partnership with Fair Finance, alongside tools like Snoop, reflects our commitment to practical, inclusive support for financially underserved people,” said Ian McLaughlin, CEO of Vanquis. “Helping customers unlock the benefits they’re entitled to is a powerful way to ease financial stress, reduce the need to borrow, and build a more secure future. Through our ‘not yet’ proposition, we’re creating better ways for people to regain control and rebuild their financial lives.”
Around one in three UK adults currently struggle to access credit from mainstream lenders, with reports suggesting that millions have turned to illegal moneylenders. This situation is also at risk of worsening, with the FCA highlighting that 49 per cent of people are potentially financially vulnerable.
The Government has pledged to develop a National Strategy for Financial Inclusion, shaped by a Financial Inclusion Committee, with input from the financial sector. This follows calls from regulators and the government for a collaborative approach that prioritises customer well-being.
A UK first
This partnership represents the first referral arrangement in the UK between a non-profit and a bank, that addresses these issues directly. It hopes to create an impactful and scalable solution to an issue affecting millions in the UK, helping them avoid financial exclusion and unnecessary borrowing.
It forms part of Vanquis’ broader ‘not yet’ proposition – an approach focused on supporting potential customers with tailored financial support rather than declining them outright.
Faisel Rahman OBE, founder and CEO of Fair Finance, said: “Partnering with Vanquis allows us to reach people often left behind by traditional lenders. Together, we’re not just providing loans, but are helping people unlock income through unclaimed benefits to build long-term financial stability.
“This referral process, backed by a new £3million lending facility, shows how lenders can play a more proactive role in supporting financial inclusion. If adopted more widely, it could help lay the foundations for a fairer and more accessible financial system.”
Source: https://thefintechtimes.com/
